Trio of US IPA suppliers announce 5 cents/lb increase for midmonth
http://www.chemnet.com Mar 06,2017 PlattsA group of US isopropyl alcohol suppliers have announced increases of 5 cents/lb to take effect in the middle of the month, the companies said in letters to customers.
Dow Chemical, LyondellBasell and Monument Chemical plan to raise US IPA pricing by 5 cents/lb effective March 15, the companies said in letters seen by S&P Global Platts on Friday.
The market has seen pressure from rising feedstock contract pricing and supply tightness, sources have said.
"In light of extreme pressures on inventory levels, we will do our best to facilitate your traditional ordering patterns but will not guarantee all orders will ship prior to increase," Monument Chemical said in its letter.
Monument Chemical added that the company will remain on a sales control of 100% of prior six-month averages.
Dow Chemical and LyondellBasell did not cite specific reasons for the increases.
US IPA was last assessed Tuesday at 69-70 cents/lb ($1,521-$1,543/mt) FOB USG and 71-72 cents/lb ($1,565-$1,587/mt) DER, the highest since November 2014, Platts data showed.
"There's not a lot of spot material out there, and the spot that is out there is going to be expensive," a source said.
Supply has been described as tight throughout the year on discussions of production issues and preparations for planned turnarounds.
Feedstock chemical-grade propylene has also seen strength in the first weeks of the year, with February contracts settling late last week near a two-year high of 46.50 cents/lb, up 6.50 cents from January.